www.rupeedesk.in
After rising over the past couple of months, shares of major information technology companies are seen in a range over the next five sessions due to recovery in the rupee against the dollar. The rupee's recovery from its Aug 28 record low of 68.08 against the dollar has checked the rally in IT stocks. Stocks of technology companies have been on the uptrend since April, when the Indian currency started slipping against the greenback. The weakness in the rupee is expected to help most IT companies report at least 20-50 basis points expansion in operating margins in the near term. Also, Europe is showing some early signs of improvement, and good demand from the US is likely to augur well for the Indian IT sector given the significant exposure to the US market. But, any significant appreciation in the rupee against the dollar, euro and pound sterling, a sharp slowdown in the global economy, acquisition-related risks, andimmigration reform are seen as sectoral risks. Wipro's growth has lagged peers in the recent past, but management restructuring should result in some growth recovery.
After rising over the past couple of months, shares of major information technology companies are seen in a range over the next five sessions due to recovery in the rupee against the dollar. The rupee's recovery from its Aug 28 record low of 68.08 against the dollar has checked the rally in IT stocks. Stocks of technology companies have been on the uptrend since April, when the Indian currency started slipping against the greenback. The weakness in the rupee is expected to help most IT companies report at least 20-50 basis points expansion in operating margins in the near term. Also, Europe is showing some early signs of improvement, and good demand from the US is likely to augur well for the Indian IT sector given the significant exposure to the US market. But, any significant appreciation in the rupee against the dollar, euro and pound sterling, a sharp slowdown in the global economy, acquisition-related risks, andimmigration reform are seen as sectoral risks. Wipro's growth has lagged peers in the recent past, but management restructuring should result in some growth recovery.
